Stable rules are key to agricultural trade
As highlighted by the Agricultural Market Information System, global trade in agri-food products depends heavily on stable and predictable rules observed by governments. However, these rules are increasingly being challenged, threatening the smooth functioning of international trade.
Tariffs escalate tensions
U.S. tariffs have triggered strong reactions from other trade blocs. For example, the European Commission has imposed additional duties on a wide range of U.S. products, including corn, rice, wheat, vegetable oils, poultry, beef, fruits, vegetables, eggs, dairy and sugar.
To mitigate the impact of these rising trade tensions and price uncertainties, the U.S. Department of Agriculture has allocated $10 billion in support for domestic farmers.
Price increases drive trade value
Despite trade turbulence, the value of global agricultural trade rose by 3% in 2023. This growth is largely attributed to a 4% average rise in global agricultural prices in U.S. dollars, according to the World Bank. The increase was driven mostly by soaring prices for coffee, tea, and cocoa — which rose 64% on average.
However, excluding those three products, prices for most agricultural commodities actually fell by 8%, potentially stimulating greater trade volumes in other categories.
Calls for multilateral cooperation
Within WTO consultations, countries like China and Canada have voiced formal complaints over U.S. measures. Many WTO members are urging a resolution of trade conflicts through dialogue and cooperation within the WTO framework.
The Association of Southeast Asian Nations (ASEAN) also emphasized the importance of respecting international trade rules, especially given agriculture’s role in food security and economic stability.
In this increasingly fragmented landscape, the WTO warns that sustained global agricultural trade will only be possible if nations recommit to collaborative and rule-based commerce.
pigprogress.net